Pre analysis computron PDF

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Computron Pharmaceuticals Negotiation Pre Analysis Role of Job Candidate

Summary of negotiation This negotiation is a potential job offer for student who is slated to complete his masters in Electrical engineering. The offer would be from the Company Copmutron Pharmacy for a position as the MEDWARE Program Manager. The Job requires someone familiar with SIMULINK software and has an immediate project deadline to roll out the new software program by April 1st. The job itself is slated to start September 1st. With the potential job offer, the student is focused on three main aspects of the offer that are important to him. His focus is on his salary, which based on his estimates of industry standards over the past 5 years, and should be between $60,000 and $80,000. He is also concerned about a signing bonus. Industry standards range from no bonus to around $10,000 as top bonus with $5000 being the average. There is a lot of prestige with signing bonuses within the school program and in the industry so this item is actually of significance to him. He would like to ensure he receives the highest possible bonus. Anything over $5000 would be considered higher value by 25%, whereas anything under $5000 would diminish the value of the bonus by 25%. Lastly, the student would like to negotiate the terms of relocation and moving expenses. He has determined that there value of receiving full assistance would be $3000, whereas the value of doing it himself would be a $2000 cost, with various degrees of value/cost in between. The goal of the student is to not only secure the position with the firm, but to maximize the value of his offer to ensure he is within or greater than the $100,000 to 140,000 range.

Strategies When looking at potential strategies it’s important to both identify items that can be negotiated, as well recognize the specific areas that bring each side of the party value, power, or leverage in the negotiation. This section will explore those for both the student and the students’ assumptions of Computron Pharmaceuticals. It’s important to note that this analysis is based on the students’ perspective as his knowledge of Computrons position is limited. He is unaware of what their specific needs and wants are other than what he has personally gathered. He is also unaware of their value of him, but has made some assumptions included in this assessment based on industry standards. It’s highly likely, that there are several items that the student is unaware of going into the negotiation, so it will be critical for him to attempt to estimate the position of Computrons to best strategize to maximize the negotiation. There are several aspects of the negotiation that can come in play when negotiating with Computron. These include start date, salary, bonus, moving expense, and contingent project deadlines. Each of these must be considered in order to maximize the negotiation for the student. We will identify how to maximize each these by looking at some key points of information the student has going into the negotiation and some assumptions he will make about Computron. First we will want to consider the students best alternative to a negotiated agreement(BATNA). For the student, If he doesn’t accept the job, his BATNA would be a similar job in the industry. While he currently doesn’t have another job offer, his degree is highly

sought after, and industry information shows that graduates have a fairly easy time obtaining meaningful employment. The student has won awards for his work, restructured his schools website and is involved in several extracurricular activities that boost his value and resume. This is important for the student to recognize because it means he should be more aggressive in his interview. If he does not get this job, he should be able to obtain a similar competitive job fairly easy. For this reason, the student will try not to settle in the negotiation and push for higher bonus and moving expenses. It’s also important to examine Computrons BATNA, as it can help the student analyze what their commitment to him is and what leverage they may have or he may gain. From the information he gathered, it appears as if the company is interviewing 50 applicants. The position requires knowledge of Simulink, which it appears none of the applicants have. Based on this information the company’s BATNA’s would be to hire another applicant from outside and train them, promote internally and train them, or keep searching for a qualified candidate with Simulink skills. Recognizing these Batnas is very beneficial to the student, in that it allows him to see the need the company has for him. His BATNA shows that he will be ok if he doesn’t accept the job, however the companies Batnas are assumed to require extensive training which is both costly and time consuming. The student should point out this cost as part of the negotiation. The Company is also under a time constraint to complete the project by april 1st. Training on Simulink will take time, which could push back this deadline and be costly for the company. Once again, by recognizing the weaknesses in Computrons BATNA’s, the student has identified some powerful leverage for his negotiation.

While it appears the student has some strong leverage, caution should be used during the negotiation. The student will want to be aggressive; however this is his future company he will work for if the negotiation is successful. By being too aggressive he risks damaging the relationship with his company which could create ongoing work conflict and eventual job loss. While there is no monetary measure for this, it’s value is important to understand, and should be considered. It will be important for the student to ensure he maintains a positive relationship if he is going to accept, even if that means accepting a lower monetary deal. With the goal of relationships, the student should recognize that the person he is negotiating with attended the same program he did. By building a relationship by commonalities, the student may gain some favor by assimilation and reflection. Often, poor negotiators will reflect similar self-value on those they relate with because of a things in common in their background social life or similar traits. The student will want to point this out to quickly build a relationship with his interviewer and make a more relaxed comfortable environment. By finding similarities and building a relationship, it will be more difficult for the company to say no to his demands. Based on the strategy the students plan will be to first, establish a positive relationship by recognizing the similarities in school and background. The student will then want to ask for the full amount $80,000, $10,000 bonus and full moving expenses. The student will want to offer first, to ensure he dictates and controls the environment. When the company counters, the student will want to identify cost savings by hiring him such as time required to train a different employee ad cost of training. He will also want to point out he feels confident he will compete the upcoming project before april 1st. because the student is confident in this, he may use this as a barging tool. The bonus is very important to him, so he wants to ensure the

highest possible bonus. He could push for the $10000, with $5000 contingent on completion of the project by the april 1st deadline and a potential additional $2000 if he completes the task by feb 1st. During the negotiation, the student should be ok making some compromise with the offer, except with the bonus. He wants to maintain the positive relationship, so some give and take may be required to gain relationship value. Lastly, if the company is not willing to meet his bonus or ensure he is in the desired range, the student should walk away. Goal The students’ goal is simple. Maximize the value of the offer while maintaining a positive relationship with the company. The strategy of the relationship is described above. It will be important for the student to have a concrete number as a target for his negotiation. Based on the assessment and leverage the student has, the student should shoot for a two year deal with a value of at least $140,000, but must include a maxed out $10,000 bonus. Compromises can be made with moving and base salary, but the student should walk away if the deal is under 140,000. Road Blocks Lastly, we will want to examine any potential road blocks the student may run into. The company did interview 50 candidates as well as mentioned they could hire internally and train. The company could view another one of these candidates, or the benefits from promoting internally as a similar value to hiring the student. If this is the case, they may only be willing to offer a lower amount and the student would have less leverage. The company also may not have the money to pay for the bonus or the salary he is seeking. His numbers are based on

industry standards but not Computrons financial abilities. It could be likely it’s not cost effective for them to pay the same rates as the rest of the industry. Overall, barring any major unforeseen obstacles, the student is in a fairly strong position to advocate for what he would like. It is expected that his assumptions lacked full understanding of Computrons position, so adjustments to his goals will need to occur and new information is gained during the negotiation. The student should do what he can to seek this information by prompting Computron to divulge the information as reasons why they won’t accept the requested salary and bonus if they choose to not to accept....